Mortgage and an amalgamation project

benjsouthlondon

Hi all,

Am consulting my broker about this but keen to hear any other views or experiences of handling mortgages through an amalgamation project. 

In short, we own a two-bed ground floor flat and have an opportunity to purchase the upstairs flat. If we proceeded we would have planning in place and the flats would revert to a single title on completion. 

The existing flat we own is currently mortgaged (about 30% of value), and we are 1.5 yrs into a decent 5-year fix. 

Whilst we do not need additional borrowing to buy upstairs, we would need to continue borrowing at the same level (or ideally a little more in order to complete renovation work). 

I understand our only real path is to source bridging finance, accept the ERC on the existing loan, complete on the purchase and then secure a new mortgage to pay back the bridging finance and get the necessary funds to do the work. However, ideally we'd of course love to port the existing mortgage to the 'new' amalgamated property but I believe this is nigh on impossible.

Any views or experiences people can share?

kingstreet

As you will need the permission of your lender, they would be the best first port of call to see if your plan is viable.